The study looked at how wages changed in Italy in the 1990s. They found that even though wages are usually set centrally in Italy, individual firms still have their own wage policies. When average wages at a firm go up, wages for all workers there go up too, and the difference between high and low wages also increases. This shows that firm wage policies affect both how much workers are paid and how their pay changes over time. The study also found that Italian wages are more flexible than previously thought, with wages changing based on the economy and workers moving between jobs. Compared to other countries, Italy has lower wage differences between workers, which might be linked to more people starting and leaving jobs.